Patanjali’s fall from growth was as swift as its rise. Away from limelight, it appears to be resurrecting itself
Patanjali’s Ruchi Soya acquisition gives it size but also sizeable debt. The financial structure and integration are crucial to make it work
In December 2017, NCLT had referred Ruchi Soya for insolvency on applications moved by Standard Chartered Bank and DBS Bank and appointed Shailendra Ajmera as the resolution professional (RP).
The tribunal observed that the NCLAT order has changed the entire outcome for all stakeholders and is like a formula with clear-cut directions on the distribution of the proceeds should be carried out.
Patanjali's proposal got a 96 percent approval from the committee of creditors after a vote on April 30.
Patanjali, the lone player left in contention after the exit of Adani Wilmar, had last month increased its bid value by around Rs 200 crore to Rs 4,350 crore for the Madhya Pradesh-based Ruchi Soya.
Patanjali Ayurved's close to acquiring Ruchi Soya but its balance sheet already looks stretched. Going public to raise equity could solve this problem. Investors too would be happy at the prospect of owning its shares
Total income rose marginally to Rs 3,500.07 crore during October-December 2018 from Rs 3,049.94 crore in the year-ago period.
Ruchi Soya’s acquisition will not only expand its current business but also be a vital component in Ramdev’s ambitious plan of doubling revenue, which the company failed to do in fiscal 2018.
Ruchi Soya will not only make Patanjali the second biggest edible oil company, but also boost its manufacturing capacity and distribution muscle
Patanjali had lost out to Adani Wilmar in a fierce bidding battle for debt-laden Ruchi Soya in August, despite having a higher offer.
In December 2017, Indore-based Ruchi Soya Industries entered the Corporate Insolvency Resolution Process (CIRP).
The company posted a net loss of Rs 2,882.71 crore in the year-ago period
After sale of these shares, the promoters' stake in the company has come down to 38.88 percent from 42.06 percent, the filing said.
Adani Wimar's bid was approved by the committee of creditors (CoC) with about 96 percent votes in favour.
Total income, however, dropped to Rs 2,992.52 crore during the first quarter of 2018-19 from Rs 3,280.18 crore in the corresponding period of the previous year.
"@CCI_India finds no Appreciable Adverse Effect on Competition in proposed acquisition of Ruchi Soya by Adani Wilmar Limited," the regulator said in a tweet.
Adani Wilmar, which sells cooking oil under the Fortune brand, and Baba Ramdev-led Patanjali are in the fray to acquire debt-ridden Ruchi Soya. Adani has emerged as the highest bidder (H1) with an offer of about Rs 6,000 crore, while Patanjali's bid was worth around Rs 5,700 crore.
Patanjali group has also sought information about the parameters adopted by the RP to declare Adani Wilmar as highest bidder (H1), besides questioning the appointment of Cyril Amarchand Mangaldas as the RP's legal advisor as the said law firm was already advising Adani Group.
On May 15, Ruchi Soya had declared to the exchanges that it had received a letter from the SFIO regarding an investigation into its affairs.
According to sources, Patanjali, which has been declared as H2 (second highest bidder), has not yet submitted a revised bid to match or better the highest offer of Rs 6,000 crore by Adani Wilmar.
Patanjali had been given time to counter Adani Wilmar's bid for Ruchi Soya, but it reportedly hasn't raised its offer
Billionaire Gautam Adani's group company Adani Wilmar had offered about Rs 6,000 crore while Patanjali Ayurved bid for around Rs 5,700 crore.